Question

Flynn Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Flynn accumulated the following data relative to those activity cost pools and cost drivers. Estimated Use of Cost Drivers per Product Estimated Use of Cost Product Product Annual Overhead Data Estimated Overhead $18,500 106,920 35,640 Drivers per Activity Activity Cost Pools Machine setup Machining Packing Cost Drivers Setups Machine hours Orders BC113 AD908 37 4,860 540 26 1,180 180 3,680 360 Using the above data, do the following Prepare a schedule showing the computations of the activity-based overhead rates per cost driver Activity Cost EstimatedEstimated Use of Cost Machine setup Machining Packing Activity-Based Overhead Rates Pools Overhead Drivers per Activity 18,500 106,920 35,640 161,060 37 setups 500 per setup 4,860 machine hours 22 per machine hr 40 orders 66 per order

Answer 1

Answer

>Remaining incomplete parts

	BC113			AD908
Activity Cost Pools	Estimated use of Cost driver	Activit based overhead rates	Cost Assigned	Estimated use of Cost driver	Activit based overhead rates	Cost Assigned
Machine setup	26	$500	$13,000	11	$500	$5,500
Machining	1180	$22	$25,960	3680	$22	$80,960
Packing	180	$66	$11,880	360	$66	$23,760
Total assigned Costs			$50,840			$110,220

		BC113	AD908
A	Total assigned Costs	$50,840	$110,220
B	No. of units	2000	1000
C = A/B	Overhead cost per unit = ANSWER	$                      25.42	$                                 110.22